Economy

South Korea’s finance minister said more currency market stabilization measures are on the way

South Korea’s finance minister said more currency market stabilization measures are on the way

SEOUL (Reuters) – South Korea’s finance minister said the government will prepare more measures to stabilize the foreign exchange market, while downplaying currency swap arrangements with the United States.

Minister Cho Kyung-ho said during a TV interview on Sunday that the measures include using the government’s Foreign Exchange Equalization Fund to meet the foreign exchange hedge requests of shipbuilders, thus increasing the supply of dollars in the domestic market.

As part of the FX authorities’ efforts to mitigate volatility in the FX market, as well as the currency swap arrangement between the country’s central bank and pension fund announced Friday, Cho said, they see the South Korean won recently weakening at a faster pace than most of their peers.

Asked about the possibility of a currency swap deal between the Bank of Korea and the US Federal Reserve, Cho said that it would certainly be beneficial for the domestic market, but not yet necessary in the current market situation.

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